Yahoo Finance AUD/USD Weekly Price Forecast – Aussie continues to find support
The Australian dollar has bounced a bit during the week after initially falling towards the crucial 0.7050 level. That’s an area that has been supportive more than once, and therefore I think it makes sense that we continue to find buyers in this area. This is the scene of the major hammer from the flash crash, and I think that given enough time it’s likely going to end up being the bottom of the market. I think that given enough time we could see a bit of a significant bounce towards the 0.7250 level, but I think it’s going to take a lot of momentum to get up there. In general, I believe that the market will continue to find reasons to gyrate as we try to figure out where we are going. The 0.70 level underneath is massive support that extends down to the 0.68 level on the monthly charts. With that in mind, it’s very difficult to imagine that we will break through it. In fact, if we did it would be a massive change in attitude.
AUD/USD Video 18.02.19
To the upside, if we can break above the 0.7050 level, then I think the market is free to go towards the 0.75 handle. That area would of course attract a lot of attention but by then we will have changed the overall trend, which is something I think we are trying to do right now. If that is in fact the case, these are typically messy moves, so it makes sense that we would struggle a bit. Expect volatility.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
